Nevertheless, losses were only modest early on with the Dow Jones Industrial Average, Nasdaq and S&P 500 all falling by just 0.2%.

Google and IBM dampened sentiment in the tech sector after missing estimates with their third-quarter results after the closing bell last night; banking heavyweights Morgan Stanley and Goldman Sachs, however, impressed with their quarterly figures.

It was a relatively busy day for corporate earnings with 25 companies on the S&P 500 due to release their results. According to Bloomberg, analysts predict that profits per share across the S&P 500 fell by an average 0.9% in the first quarter.

In economic data, initial weekly unemployment claims increased by just 2,000 in the week ending on April 12th, to reach 304,000, according to the Labor Department. The consensus estimate had been for an increase to 315,000. Claims in the previous week were revised up by 2,000 to 302,000.

The Philadelphia Fed manufacturing index rose to 16.6 in April from 9.0 in March, the highest reading since September 2013.

In other news, Russian President Vladimir Putin said he was ready to deploy troops in Ukraine if diplomatic efforts fail to resolve the crisis.

His remarks came as foreign ministers from Russia, Ukraine, the US and the European Union were meeting in Geneva discuss ways to douse the flames.

Google, IBM, Morgan Stanley, Goldman

Internet giant Google tumbled as first-quarter revenue and earnings fell short of analysts' expectations, with paid clicks also falling from the last quarter of 2013. Google reported adjusted earnings up 1.3% to $6.27, just shy of $6.33 a share broker consensus, as revenues grew 19.1% to $15.42bn, with analysts expecting $15.58bn.

Computer group IBM also slumped after first-quarter sales fell 4% to $22.5bn, worse than analysts' forecast. This, along with costs associated with its restructuring programme, led to a 21% fall in net profits.

Morgan Stanley rose strongly after earnings jump 63% to $1.46bn, or 74 cents a share, coming in ahead of the 68 cents consensus forecast. Revenues were up 10% at $8.93bn, compared with the $8.49bn estimate.

Goldman Sachs was also making gains as a 11% fall in profits was better than analysts expected. Net income fell to $1.95bn, or $4.02 a share, compared with the $3.45 forecast. Revenues fell 8% to $9.33bn but came in well ahead of the $8.70bn prediction.

Netflix gained as Pacific Crest Securities upgraded the largest online video-subscription service to 'outperform' from 'sector perform', projecting international growth in the next 18 months.

West Texas Intermediate crude futures rose 0.18% to $103.95 per barrel on the NYMEX.

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